Donald Trump demands withdrawal of India’s ‘unacceptable’ tariff hike

  1. The US President has demanded that India should withdraw the retaliatory tariffs calling the duties unacceptable.
  2. India had imposed long pending retaliatory tariffs on 29 US products after US had withdrawn Generalized system of preferences (GSP) for Indian exporters.
  3. This action came a year after the notification for the retaliatory tariffs was issued in 2018 in response to penal duties imposed on Indian aluminium and steel by the US.
  4. Further,US and India has issues that needs to be resolved such as (a)India’s Data localisation rules which forced foreign companies to store their data locally (b)Price controls on medical devices(Cardiac stents) (c)Tariff on ICT products (d)Lack of greater market access for the US dairy industry and (e)India’s e-commerce policy.
  5. In 2018, bilateral trade in goods and services between the two countries registered a growth of 12.6% to $142 billion from $126 billion in 2017.

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